AI Drafter 
TaxTMI 
TaxTMI 
2020 (9) TMI 651
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.... India Limited, against demand of service tax confirmed by the Ld. Commissioner vide various adjudication orders in respect of periodical Show Cause Notices issued for the period April 2011 to June 2017 under the category of "Transportation of Goods through Pipelines / Conduit Services". Since all the appeals involve common issue, the same are taken up together for disposal by this common order. 2. Briefly stated, the facts of the case are that the assessee M/s. OIL India Limited, a Govt. of India enterprise, is engaged in the business of exploration, production and sale of crude oil and natural gas. The point of dispute in the instant case is whether the appellant is liable to pay service tax under the category of "Transportation of Goo....
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.... a settled legal position that both sales tax and service tax cannot be made simultaneously leviable. He relied on various decisions incl. the following decisions:- • Imagic Creative Pvt Ltd. vs. Comm of Commercial Taxes 2008 9 STC 337 (SC) • Grasim Industries Ltd vs. CCE 2016 (45) STR 65 (Tri-Del) • CCE, Hyderabad vs. Singareni Collieries Co Ltd. (Final Order no. A/31199/2018 dated 10.09.2018) • CCE, Bhubaneswar vs. Mahanadi Coalfields Ltd (Final Order no. 76585/2017 dated 21.08.2017) • South Eastern Coalfields Ltd 2018 - TIOL - 1691 - CESTATDELHI • Northern Coalfields Ltd vs. CGST 2018 (8) TMI 1742 CESTAT Delhi He further contended that even if the transporta....
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.... are of the view that had there been no arrangement for sale of crude oil to the buyer oil companies, there would have been no case for the appellant assessee to undertake the transportation of goods. It is only in order to honour the mandate of sale transaction to deliver the goods at delivery point, the transportation activity has been undertaken by the appellant assessee . We also note that in the entire impugned adjudication order, the Ld Commissioner has not disputed the submissions made by the appellant assessee that risk and rewards associated with the transportation of crude remains with the appellant till the time the same is delivered to the buyers premises where the sale transaction is concluded. Neither there is any dispute with....
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....premises, the transportation of the same is service...." In the aforesaid paragraph, the learned Commissioner has categorically accepted the fact that the appellant is under contractual obligation to supply and deliver the goods at the buyer's premises which has been referred as 'Custody Transfer Point' or the point of delivery. However, he confused the whole matter with the concept of "place of removal" to hold that the transportation charges is not liable to be included in the value of crude oil, which is not the subject matter of dispute herein for the reason that the demand in this case is not on the crude oil but on the transportation charges which though separately recovered is to solely honour the sale transaction by d....
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....t the buyers end, the transaction is concluded. The pipeline is laid and owned by the appellants. The said pipeline is used for transport and sale of chlorine to M/s. Gwalior Chemical Industries Limited. In these factual background, we find there is no service provider and service recipient with reference to transport of goods through pipeline for charging service tax. The transport of chlorine through pipeline is done by the appellant in their own account and the delivery on sale is made to the buyer. The transportation charges are included as a consideration for sale and to discharge Central Excise duty. As such we find no justifiable legal basis to sustain any service tax liability on the appellants in the above transaction." Further,....